Convertible securities are instruments that can be converted into other securities. Various types of convertible securities are traded on TASE, including warrants and convertible bonds.

A warrant is a convertible security that grants the holder the right to purchase securities (usually shares) from their issuer at a specific price within a certain time frame (usually one to four years). The warrant allows the purchase of securities in two installments: when buying the warrant and when converting it. The share that the warrant holder receives upon exercise is a new one that the company issues. Similar types of warrants can be converted into securities other than stocks, such as bonds.

A call option also gives its holder the right to buy a share at a predetermined price, during a limited period of time. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are instruments that are not issued by the company

A convertible bond is a bond that can be converted into a predetermined amount of the company's equity at certain points during its lifetime, usually at the discretion of the bondholder, within a certain time frame. Essentially, it can be considered as a bond and a warrant bundled together in a single instrument. Thus, convertible bonds have a built in value-added component from the investor's perspective. On the other hand, they tend to offer lower interest.